The rich also, have tangible assets like expensive cars, gold, mansions, yachts, diamonds, etc which will hold its value. Even a used yacht would fetch a higher value. And if they have businesses that generate income, that income will continue to come in at a faster pace than most average Americans earn their monies. That is why the rich do not worry. They can also, move places for the tax advantages that they can reap.
imagine owning a 76' yacht but not understanding fluctuations in a currency's purchasing power...fuck im doing it all backwards.
Until logsitics cost come down inflation will be real for quite some time.... 2022 will still have elevated freight rates and trucking costs and if they come down a bit in 2022 retailers and vendors will still keep prices up a bit to make up for lot of money lost in 2021 when rates spiked and they had to eat a lot of logistics costs.
piezone should be here any minute now to straighten us on our naive quaint thinking that deficit and especially debt really does matter. He says it is all just numbers and as long as debt/gdp ratio doesn't get above 10 zillion to one or some such we are ok.
Raising taxes is extremely unpopular. Prining a ton of money for whatever governmental projects you want to fund is the secret way to raise taxes without raising taxes. Now you dont have to see the federal government is taking 10% more out of your paycheck. Your political opponent cannot throw the scarlet letter at you of taking people's wages through higher taxes. Sure they can say you are printing money and reducing the buying power of the citizenry, but that goes right over most people's heads. To them it's a boring talking point that gets plucked from some arbitrary list of talking points people dont care about. In actuality its detrimental, but to the person hearing it they only care about the normal amount they see on their biweekly paycheck, and that amount is still the same so in their minds nothing has changed. Instead they are dying the death of a thousand cuts. They dont notice the bread is 15 cents more or the can of peas is 8 cents more, and that's what the political establishment is banking on, and they are right. Wait until the dollar ceases to become the world currency, because that is where we are headed.
used cars are up because demand for new auto is high and supply low due to chip shortages. Not surprising most of the items seeing the biggest issue are supply chain or re-open related. Housing demand up due to record low APR's? No surprise. Gas up after plunge in price of oil on shutdown demand? No surprise Yes, high demand with short supply also creates inflation.
And demand is up, not just because supply can't satisfy it, but because there is plenty of money "floating" around. Gubmint and market supplied money - stimmy/QEternity and appreciating stock market, crypto and real estate bubble assets.
Besides the negative on money printing, there is also a big positive. What governments basically do is printing whenever a ‘disaster ‘ strikes, thereby softening the potential dip which would occur otherwise. It’s basically roaming a little money from everyone and thereby over ovecoming a big recession with social unrest ( which also comes at a cost). We ( and other people with wealth) have to stay away from holding wealth in fiat money.